Belize and Panama Company Incorporation
While company incorporation in Singapore is a highly sought after prospect by foreigners from all over the world, conducting business activities by establishing offshore companies is another aspect that foreigners could look into.
Belize and Panama Pre-Incorporation Factors
- Difficult to open a bank account
- Bad Tax planning Instrument
- Bad International Reputation
Better Tax Planning Purposes Solutions
- Malaysia Company Incorporation offers Full Tax Exemption for Foreign Source Income with more than 72 Tax Treaties
- Singapore Company Incorporation offers good International reputation and reliable banking system for international business
Establishing An Offshore Company In Belize
Belize and Panama are becoming extremely popular destinations for establishing offshore companies.
Belize has developed a thorough legal framework that is meant to attract offshore companies that will operate outside its jurisdiction. An offshore company formed in this country is referred to as an International Business Company. The main benefit of investing in this country is the fact that it has got very inexpensive annual license fees and it also boasts of a very detailed privacy law that is meant to protect the shareholders and the directors of the company.
Advantages of a Belize International Business Incorporation
- An IBC is not charged local taxes. This means that taxes such as capital gains, income taxes, value added tax and so on are not charged on companies that operate as offshore business.
- Privacy laws ensure that people from all over the world who would not like their wealth to be within the gaze of the public can form companies and operate anonymously in different countries of the world.
- There are no requirements that regard the minimum amount of capital that one is supposed to have.
- The annual licensing fee is low, and there is also an affordable level of support in the country.
- The international business company act, as established in 1990, is the one that sets this country to be one of the top jurisdictions of international offshore businesses.
The Requirements For Registration
If one wants to register an international business company in Belize, the following are the requirements: The name of one shareholder. The company will need to list the name of one shareholder even if the shareholder is just a proxy.
Even if the shareholder allocated a share value of $1.00, the company is ready for going. The name and address of the business. Together with the name of the company, which is supposed to meet certain requirements, one is also supposed to submit the registered address of the business which must be in Belize.
Formation of An Offshore Company in Panama
Panama is one of the very popular destinations for offshore investors. There are many reasons that is so, and the process of incorporation is very simple. One thing that you need to know is that when it comes to opening an offshore company in Panama, dividend income is not taxed. In fact, such an offshore business is not even required by law to file an income tax return.
The legal currency of Panama is the Balboa. One Balboa is equivalent to one U.S. dollar. Panama also uses U.S. dollar as the official currency of the Nation. Currency restrictions and exchange rate controls do not exist in Panama. This level of freedom is extremely useful considering that one who is investing in Panama must be someone from outside who will need to exchange the local currency to the US dollar. This lack of currency exchange controls is what makes investors choose Panama as the number one destination for offshore investors.
Since the government doesn’t benefit whether an institution declares tax returns or not, corporations are not penalized for retaining earnings.
A corporation may choose to retain its earnings for the entire length of its lifetime. This ensures that a company can continue to plough back its profits for greater growth. Panama is also a jurisdiction that allows one to form a company very fast. Within 48 hours one can expect one’s business to be incorporated in Panama.
The politics and development environment of Panama, together with a highly-developed financial system, ensures that this particular jurisdiction continues to be among the most preferred.